midatech 2016 annual general meeting investor...dara biosciences inc. (june 2015) • adds nasdaq...
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MIDATECH2016ANNUALGENERALMEETING11MAY2016
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Disclaimer
Certain statements in this presentation may constitute “forward-looking statements” within the meaning of legislation in the United Kingdom and/or United States. Such forward-lookingstatements include, but are not limited to, statements regarding the expected completion of the acquisition, any expected free cash flow generation, any expected NASDAQ listing, anymarket and growth opportunities, the amount of anticipated cost synergies and other bene fits associated with the acquisition and other statements that are not historical fact. In somecases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend, ” “plan,” “seek,” “anticipate,” “believe,” “potential,” “estimate,”“predict,” “potential,” or “continue” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because theyinvolve known and unknown risks, uncertainties and other factors that are, in some cases, beyond our control and that could materially affect actual results, the acquisition, levels ofactivity, performance, or achievements.
Any forward-looking statements are based on currently available competitive, financial and economic data together with management’s views and assumptions regarding future eventsand business performance as of the time the statements are made and are subject to risks and uncertainties. We wish to caution you that there are some known and unknown factorsthat could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements, including but notlimited to uncertainties as to how DARA stockholders may vote in respect to the merger proposal, the possibility that competing offers may be made, the possibility that various closingconditions for the Acquisition may not be satisfied or waived, operational challenges in achieving strategic objectives and executing plans, the risk that markets do not evolve asanticipated, the potential impact of the general economic conditions and competition in the industry. The risks included are not exhaustive.
Reference should be made to those documents that Midatech and DARA shall file from time to time or announcements that may be made by Midatech and/or DARA, in the case ofMidatech, in accordance with the London Stock Exchange AIM Rules for Companies (“AIM Rules”) and the Disclosure and Transparency Rules (“DTRs”) and in the case of DARA the USSecurities and Exchange Commissi on (“SEC”), including the section titled “Risk Factors” of DARA’s most recent Annual Report filed on Form 10-K and Quarterly Reports on Form 10-Q. Thisis in addition to the proxy statement/prospectus to be filed by Midatech and DARA, which shall contain and identify other important factors that could cause actual results to differmaterially from those contained in any projections or forward-looking statements. These forward-looking statements speak only as of the date of this announcement. All subsequentwritten and oral forward-looking statements by or concerning Midatech or DARA are expressly qualified in their entirety by the cautionary statements above. Except as may be requiredunder the AIM Rules or the DTRs or by relevant law in the UK or the US,Midatech and DARA do not undertake any obligation to publicly update or revise any forward-looking statementsbecause of new information, future events or otherwise arising.
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ARapidlyGrowingInternationalSpecialtyPharmaceuticalCompany
Organisation
Technology
Organisation
CommercialForce
Technology
UK-basedpubliccompany(plc)• IPOonLondon’s AIM(MTPH)raising£32millionin2014• ADRslistedonNASDAQ(asMTP)inDec2015• c.100employeesacrossEurope&theUSA• Multipleacquisitionsdrivingfastrevenuegrowth• £16.2m/$24mcashasofDecember31st2015
Oncology/USCommercialTeam(40)• 6fast-growthmarketedproducts• Including1matureproduct inUS• Multipletopline growthexpected in2016vs2015
FullyintegratedR&Dcapabilitieswithtwoplatformtechnologies• FullR&Dcapability• Glycancoatedgoldnanoparticles• CAD“printed”sustainedreleaseparticles
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PartnersUsingMidatech TechnologiesOncology/Neuroscience/Diabetes
CommercialOncology&SupportiveCare(US)
AcquisitionsLateStageStrategic&SynergisticAssets
Research&DevelopmentOrphanOncology /ImmunotherapyNeuro /Ophthalmology
OurApproach– BusinessModel
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Midatech PharmaUS– marketedproducts
Comprehensiveofferingoforalsupportivecareproducts forcancerpatients
Buccal Tablet For Oral Candidiasis In AdultsSerious complication for patients undergoing radio/chemotherapy
Launched H2 2015 – first full year of sales 2016
Hyaluronic Acid Oral Gel For Oral Mucositis85-100% of H&N cancer patients on chemo/radiotherapy develop OM
Leads market in US strong growth expected 2016
Dual Iron DeliveryAnaemia treatment
Oral Spray Treatment For Dry Mouth Xerostomia
The only liquid oral tamoxifen available in the USBreast Cancer
ProductsthroughacquisitionofDARABioSciences Inc.(June2015)
• AddsNASDAQlistingandheadquartersinRaleigh,NCwith32USfieldorganisation
• MergerestablishesMidatechPharma’sUS-basedcommercialarm
• Productsfocusedononcologyandsupportivecare
• Portfolioofsixapprovedproducts
• Providesplatformforadditionalproductlicenseandacquisitionopportunities
Zuplenz®acquiredfromGalenaBiopharma (April2016)
Oralsolubletransmucosal filmtopreventpost-Operative,ChemotherapyandRadiation-InducedNausea andVomitinginUSLaunchedonApril11TH
Patentprotectedupto2029
2015HIGHLIGHTS
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AcquiredDaraBiosciences,anoncologysupportivecarepharmaceuticalcompany• Addsanattractiveportfolioofcancersupportivecareproducts• EstablishesfullyintegratedUS-basedcommercialorganisation(Midatech PharmaUS)
2015Highlights
In2015Midatech executedagainstall keyareasofitsbusinessmodel
Establishedtworesearchcollaborationsthatexpandedpipeline• DanaFarbertotestMidatech’s targetednanomedicines againstglioblastoma• Ophthotech Corporationtoexploreopportunitiesinocularindications
AcquiredZuplenz (ondansetron),amarketedanti-emeticapprovedintheUS• Approvedforuseinmultipleindicationsandrecentlylaunchedintothe$10bnUSmarket• Bolstersmarketedoncologyproductportfolio
EstablishedsupplyagreementforQ-Octreotide signedwithCenturionPharma• FocusedondevelopmentandcommercialisationofproductsinTurkishmarket
CommencementofPhaseIIa studyofMidaform InsulinType1DiabetesProgram• SmalltrialtoestablishPK/PDprofileofMSL-001
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Totalrevenuefortheyearup763%to£1.38m(2014:£0.16m,2013:£0.15m)
£16.18mcashanddepositsat31December2015(2014:£30.33m,2013:£2.39m)
Netlossaftertaxof£11.74m(2014:£8.82m,2013:£4.08m)
Netcashoutflowintheyearof£14.17m(2014:£27.94minflow, 2013:£2.25minflow)
Taxcreditreceivableof£1.20m(2014:£0.84m,2013:£0.80m)
2015FinancialHighlights
THERAPEUTICAREAS
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Research Preclinical Phase I Phase II Market$
>$.64bn
>$2bn
>$.5bn
>$20bnMidaform® Insulin (JVMonoSol)MTD101JointVentureProduct
ImmunotherapyType1DiabetesVaccineMTX102
Cancer
OpsiSporinMTD202CNS/Ocular
Q-OctreotideMTD201
GlioblastomaMTR103
LiverHepatocellularCarcinoma MTR104
DevelopmentP ipel ine
SquamousCellCarcinoma MTR105
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Targetcellsurfacereceptorsunique totumours
Maximise efficacy
Limitside effects&damagetohealthytissue
Focusonorphan liver(HCC) andbrain(GBM)cancer
BreakthroughGNPCancerTherapies:TargetingTumours
S e l e c t iv e T u mo urTa r g e t in g L iv e r & B r a in
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Q-Octreo – MTD201
• Formulationcomplete• Increaseslikelihoodofbeingabletogettomarketfaster(2018vs2019)• Decisiontomanufactureinhousemade&willenableotherprojectsusingQ-Sphera
technology(eg Opthotech) tocapturemorevalue– Savestimec6monthsfromCMO– Costsaving
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Intravitrealinjection intotheeyewithminimaltransfertotheblood
Uveitisgrowingrapidly~$1.3bnmarket,currenttreatedbyeyedrops,
immuno-supressivesorsystemicsteroids
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Uveitis:OpsiSporin - Long-ActingDrugDelivery
OpsiSporin is3-monthlyinjectableformulationofcyclosporine fortreatmentofnon-infectiveuveitis
Recentpreclinicaldata:
ShowscleardoseresponseAllowsplanning forClinicalTrials
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ExecutingonS trategicObjectivesto2019
Tohaveacquiredatleast2othervalueenhancingbusinessesQ-Chipin2014DARABioSciences– Dec2015Zuplenz(product)– Dec2015
Established andcontinue toexpandUScommercialpresence
EstablishEUcommercialorganisation
Tohave>2productslicensedtopartners•1todate
Tohave>1ownproductmarketed•Q-Octreo oncourse
Tobebreaking-even
Tobegrowingtop-linerevenueeachyearbyminimum50%•Estimatefor2015Vs2014=700%Growth•Marketexpectation2016Vs2015=700%Growth
Toberecognised asaleadingemergingspecialtypharmacompanyglobally
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Summary
LeadingPlatformTechnologies• GNPTechnology• SustainedRelease
• UScommercialarmhas4productsinoncology,drivingfastrevenuegrowth
• Ownproductlaunchesfrom2018-19athighmargin
Midatech PharmaAnInternationalSpecialtyPharmaCompany
• Drivingrevenuegrowth• Developingclinicalportfolio• Seekingattractiveacquisitiontargets
On-trackExecutionOfThree-ProngedStrategyForGrowthAndValueCreation
Photographofsectionthroughneedleshowingmicrospheres
Representation ofagoldnanoparticle
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